Swing Trade Idea (RTX) – September 07, 2022
Our bearish trade for Wednesday, September 7th is Raytheon Technologies Corporation (RTX). RTX is part of the Industrial Sector, which has performed at -3.96% over the last month, with RTX underperforming relative to its sector at – 6.31% over the same period.
RTX broke below a key support level of $90, in line with the performance of the overall sector. As strength continues to decline, we expect some further downside with the next support level at $82.50. This provides a good risk/reward bearish entry.
As a close, if RTX were to trade above $88 for multiple days, this would invalidate our analysis and we would consider cutting losses on the trade. We also want to consider cutting losses on this options trade if the value of the vertical spread moves below $1.82.
